Here’s the overnight action and today’s action. We basically hit a high of ES2075 overnight at 8:25 –we got 2 red candles on the hourly chart — and then from there we drifted down into the open –but not much happened durnig the day — until the last half hout just before teh close.
In my previous post, I talked about the struggle between the 1-2-i-ii count and the corrective ABC – wave 2 flat in a Youtube video. It looked like the opposing view of the 1-2-i-ii was winning — if that were the case, we would’ve exploded to the upside overnight — but instead once we hit 2075 — we just slowly drifted down.
In both the S&P (above) and Russell (below) – I was expecting an A-B-C flat. Here were the charts.
Here’s what the chart looks like now:
It’s possible the Corrective A-B-C Flat I was expecting — that C portion is visibly broken down to 3-4-5 and then a pullback – which is what we saw today from 1160 to 1142.60.
If today’s pullback didn’t happen, I would’ve been in the bullish 1-2-i-ii camp — and we would likely go way up high.
In the S&P, here’s how it turned out:
Technically, you could still say an A-B-C flat — since the prior high in mid-December was 2070 — and last night we hit 2075 — before retracing back –now 2055 into the close. So the 2070 and 2075 are relatively close — hence the labeling as an A-B-C flat—though that subdivision in the last few days is not something I’m used to seeing in A-B-C flats.
Can this still be a 1-2-i-ii to the upside? Doesn’t seem so in my opinion. Could it be something else besides a corrective A-B-C wave 2? Definitely possible — I don’t know what it could be at the moment, but that’s the pattern I’m leaning towards at the moment.
At the moment, I’m expecting this pullback to continue below the 2035 area — once it breaks the 2030 — that should be confirmation that we will test the 2000 level soon. But in order for that to happen, there must be no rally in the immediate term.